General Employment Provides Status on Filing Annual Report on Form 10-K and Update on Fiscal 2012 Results

General Employment Provides Status on Filing Annual Report on Form 10-K and
Update on Fiscal 2012 Results
PR Newswire
OAKBROOK TERRACE, Ill., Jan. 15, 2013
OAKBROOK TERRACE, Ill., Jan. 15, 2013 /PRNewswire/ -- General Employment
Enterprises, Inc. (NYSE Amex: JOB) today announced it will not be able to file
its Annual Report on Form 10-K within fifteen calendar days following the
prescribed due date of December 31, 2012 as noted in our NT 10-K filing on
December 31, 2012. The audit of the financial statements is in process
however as previously announced on November 30, 2012, the Company dismissed
BDO USA, LLP as its independent registered public accounting firm and engaged
Friedman LLP as the Company's new independent registered public accounting
firm. The audit scope of Friedman LLP increased due to the fact BDO USA, LLP
would not consent to referencing its audit report of the Company's prior year
financial statements. The Company expects to file its Annual Report on Form
10-K on or before March 1, 2013. No assurances, however, can be given that
this date will be met.
Commenting on the Company's status, Michael Schroering, Chairman of the Board
& CEO stated, "We continue to work through the year-end audit with Friedman,
LLP and anticipate filing our Form 10-K soon." Preliminary and unaudited
financial information is provided in the tables below.
Select Consolidated Statements of Operation- Preliminary:
(amounts in thousands except per share) Three months Ended Twelve months Ended
September 30, 2012 September 30, 2012
Net revenue $13,000 $52,400
Operating (loss) ($550) ($800)
Net (loss) ($600) ($1,000)
(Loss) per share - basic ($0.03) ($0.05)
Select Consolidated Balance Sheet Information – Preliminary:
(amounts in thousands except per share)
September 30, 2012
Cash and cash equivalents $350
Total assets $11,200
Short-term debt $2,500
Total liabilities $7,100
Shareholders' equity $4,100
Mr. Schroering continued, "We had several non-cash items which negatively
impacted results by approximately $500,000 in the three months ended September
30, 2012. These items relate to an intangible asset impairment charge in our
Agricultural division as we lost a major customer in early 2012 and the
acceleration of stock based compensation upon a change in control announced in
September 2012. While we continue to deliver revenue growth, the execution in
achieving that growth needs to improve. We need to integrate prior year
acquisitions fully into General Employment's operations. We expect to realize
some consolidation benefits and start leveraging our respective client bases
by cross selling complimentary service offerings. I'm excited about my
appointment to the board of directors and look forward to working with the
entire organization in taking the business to the next level."
"For our quarter ended December 31, 2012, we saw continued strong revenue
growth with the better management of expenses. We anticipate reporting 25%
growth in revenue while posting a modest operating profit in the quarter."
"We have spoken with Wells Fargo and secured a one year extension on our
credit facility," added Mr. Schroering. "We continue to work diligently on
the year end audit and will file our Annual Report on Form 10-K as soon as
practical."
Business Information
General Employment Enterprises, Inc. (the "Company") provides contract and
placement staffing services for business and industry, primarily specializing
in the placement of information technology, engineering, agricultural and
accounting professionals. Effective November 1 2010, the Company and its
wholly-owned subsidiary, Triad Personal Services, Inc an Illinois corporation,
entered into an asset purchase agreement, with DMCC Staffing, LLC, an Ohio
limited liability company ("DMCC"), RFFG of Cleveland, LLC, an Ohio limited
liability company ("RFFG of Cleveland"), and Thomas J. Bean, for the purchase
of certain assets of DMCC and RFFG of Cleveland, including customer lists,
comprising DMCC and RFFG of Cleveland's Industrial services business. DMCC
and RFFG of Cleveland's services business is operated from offices in Ohio and
provides labor and human resource solutions, including temporary staffing,
human resources and payroll outsourcing services, labor and employment
consulting and workforce solution. In August of 2011, the Company purchased
certain assets of Ashley Ellis, LLC, a professional staffing and placement
business.
Forward-Looking Statements
The statements made in this press release which are not historical facts,
including the preliminary financial results, are forward-looking statements.
Such forward-looking statements often contain or are prefaced by words such as
"will" and "expect." As a result of a number of factors, our actual results
could differ materially from those set forth in the forward-looking
statements. Certain factors that might cause our actual results to differ
materially from those in the forward-looking statements include, without
limitation, those factors set forth under the heading "Forward-Looking
Statements" in our annual report on Form 10-K for the fiscal year ended
September 30, 2011, and in our other filings with the SEC. General Employment
is under no obligation to (and expressly disclaims any such obligation to) and
does not intend to update or alter its forward-looking statements whether as a
result of new information, future events or otherwise.
SOURCE General Employment Enterprises, Inc.
Website: http://www.generalemployment.com
Contact: Michael K. Schroering, Chairman of the Board & Chief Executive
Officer, General Employment Enterprises, Inc., +1-630-954-0400, fax,
+1-630-954-0595, invest@genp.com